The ongoing conflict between the US and Iran has further deteriorated the situation, pushing US crude oil prices back above $80 per barrel. This renewed upward trend in oil prices will inevitably increase investor concerns that the Federal Reserve will need to raise interest rates to curb inflation. Coupled with the latest July data from the University of Michigan, the one-year consumer inflation expectations, while declining slightly, remain above the Fed’s 2% target at 4.2%, and the five-year consumer inflation expectations index remains at 3.3%, also above the Fed’s 2% target. This data should further amplify investor concerns that the Fed will inevitably raise interest rates. Risk aversion to buying gold may not be strong in the short term, and there is a possibility that gold prices will be pushed down to the $3,955 level before finding significant support.

A short position can be established around $4,042, with a short-term target of $3,955 for profit-taking and a stop-loss at $4,062.

Gold Price 1-Hour Chart:

Ferris Kwok

Chief Analyst
Success Finance Group

Email: ferris.kwok@successfn.com